Outsourcing and the Recent Election : A View From the Philippines

I just watched Donald Trump win the U.S. election. As Trump delivered his speech on how he would bring jobs back to Americans, it made me wonder how his presidency will affect business process outsourcing (BPO) companies.

BPO companies such as call centers are big business in countries like the Philippines and India. This industry provides more than a million jobs to Filipinos, and is expected to bring in revenues topping $22 billion by the end of the year.

I live in the Philippines and have worked for a number of BPO companies. They weren’t glamorous positions, but they provided a means for people like me to earn a decent monthly wage. This is regardless of one’s educational background or expertise. It’s an industry that doesn’t discriminate due to age or inexperience, at least not as much as other fields.

“It remains to be seen whether Trump stays true to his word and implements policies discouraging companies from outsourcing work.”

I discovered some companies are now hiring students straight out of high school. In general, as long as your English skills are decent enough, you know how to multitask and use a computer, your chances of getting hired are quite high. Salaries for agents start at $350 plus bonuses, benefits, and perks. Work your way up to manager and you could potentially earn $2,000 a month.

The BPO industry also has one of the quickest rates for processing applicants. A large percentage of companies let you sign a contract within a day or two of submitting your application in person. You could potentially start training within a few days.

With this in mind, it shouldn’t be a surprise the BPO industry is a haven for the underemployed. While working the graveyard shift, I met people from a variety of backgrounds. There were students, out of school youth, housewives, seniors, former athletes, and even nurses, accountants, and engineers.

The work hours may be brutal, but working in a BPO company is a common route for people with nowhere else to go. It’s also populated by those who are in between jobs, need an additional source of income or are considering a career change. Unfortunately, the changing of the guard in both the Philippines and the U.S. has suddenly made the future of BPOs uncertain. It started on our end.

In October 2016, during a recent trip to China, Philippine President Rodrigo Duterte announced the country’s separation from the U.S. Although spokespeople would later clarify this only meant military separation, seeing President Duterte cozy up to China and Russia made some foreign businessmen anxious. Coupled with a proposed stricter US visa policy for Americans, doing business in the Philippines suddenly became more difficult.

A few days after the statement on military separation, news had spread that BPO industry heads asked for a meeting with the president regarding his statements. Although the Philippine government later declared it would protect the BPO industry, some company owners were still skeptical.

Over the weeks, rumors of accounts in call centers being shut down surfaced online. An American claiming to be a BPO company owner expressed his concern on Reddit. In his post, he revealed his plans to move his company out of the country if the Philippine president continued his troubling actions.

Now, there is incoming US President Trump.

Part of why Trump won was his promise to bring jobs back to Americans. This would involve imposing taxes on U.S. companies outsourcing their work to other countries. It’s hard to believe a businessman such as Trump would see outsourcing work abroad as something bad.

It remains to be seen whether Trump stays true to his word and implements policies discouraging companies from outsourcing work. Outgoing President Obama attempted a similar proposal a few years back with little success. Simply put, outsourcing work made sense for businessmen. It provides more bang for their buck.

The threat of BPOs shutting down in the Philippines isn’t new, but it shouldn’t be taken lightly. Even if the effects won’t be felt immediately, the next few months could determine the future of the industry and the fate of the underemployed in the Philippines. It may be time to start learning new skills and searching for alternative jobs again.

Anyone interested in learning Mandarin?

Stacey Gonzalez is a freelance writer and photographer based in the
Philippines. She is an avid traveler and enjoys watching horror movies,
especially Asian horror.

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Underemployment isn't isolated to the United States. It's truly an international problem. India, Canada, Australia, Scotland, The U.K, and the Philippines are just some of the other nations struggling with underemployment on a massive scale.

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